Life Insurance

You cannot withdraw money from a term Life Insurance policy in India. Term Life Insurance policies are designed to pay your beneficiaries a lump sum amount called the "death benefit" if you pass away during the policy term. They do not build cash value, so there is no money to withdraw. However, some Life Insurance plans, such as ULIPs and money-back plans, allow you to withdraw money during the policy term. However, there may be penalties or restrictions on withdrawals.

• Term Plans: Term Insurance is a type of Life Insurance that provides coverage for a specific period, also known as the "term". In case of your untimely demise during the term, your family will receive the "death benefit", which is a lump sum of money. If you survive the term, there is no payout or maturity benefit. Term Insurance plans also include several "riders" or add-on benefits that can enhance the coverage offered by the plan at an additional cost-effective price.

• Savings Plans: Investing in a Savings Plan can help you develop financial discipline, save for your short-term and long-term goals, grow your money over time, diversify your financial portfolio, provide financial security in case of unexpected events, offer tax benefits, and beat inflation. Most Savings Plans offer partial withdrawals or loans against the plan after the lock-in period, providing you with financial flexibility during emergencies. Upon the plan's maturity, you can receive the accumulated amount, in the form of a lump sum or regular instalments, depending on the plan.

• Child Plans: Our Child Plans are long-term investment-cum-insurance products created to safeguard your child's future requirements such as higher education, marriage, etc. They provide you with life cover, thereby securing your child's financial future in case of an unforeseen event, and also allow you to invest in various instruments such as equities, bonds, and fixed deposits to grow your money and maximise returns over time. Child Plans allow partial withdrawals to meet immediate financial needs like school fees or medical expenses, and on plan maturity, a lump sum amount is paid out, which can be used to fund your child's education, marriage, or other essential needs. The child's age should be between 0 to 18 years at the time of policy inception.

• Retirement Plans: Retirement Plans help you accumulate wealth and generate a steady income during your retirement years. Your premiums are invested in various financial instruments, such as equities, bonds, and fixed deposits as per the plan. These along with the returns generated by the investments, grow over time, creating a retirement corpus. Upon reaching the vesting age, which is the age at which you can start receiving benefits from the plan, you can start receiving payouts from your retirement plan in the form of a lump sum, regular income (annuity), or a combination of both, depending on the plan and your needs.

• ULIP Plans: ULIPs or ‘Unit Linked Insurance Plans’ are market-linked insurance plans that offer both Life Insurance and investment opportunities in which part of the premium is used to pay for a lump sum of money that is paid out to your beneficiaries in case of your untimely demise during the term of the policy, and the remaining part of the premium is invested in a variety of funds, such as equity funds, debt funds, or a combination of both. After policy maturity, you will receive the maturity benefit. Most ULIPs allow partial withdrawals after the end of the lock-in period.

• Endowment Plans: An Endowment Plan is a Life Insurance plan that combines savings and protection. In case of your untimely demise during the term of the policy your family and loved ones will receive a guaranteed amount of money. If you survive until the end of the term, you will receive the maturity benefit, which is the amount of money that has accumulated in your plan plus the interest earned.

Term insurance offers pure life cover for a specific period - if the policyholder passes away during the term, the nominee receives the sum assured. Whole life insurance, on the other hand, provides lifelong coverage (often up to age 99 or 100) and may include a savings component. Term plans are more affordable, while whole life plans offer longer protection and sometimes maturity benefits.

The free-look period is typically 15 to 30 days from the date of policy issuance, during which you can cancel the policy if you’re not satisfied with the terms and conditions. If cancelled within this time, you’ll receive a refund of the premium paid (after deducting minimal charges like stamp duty or medical tests).

No, life insurance payouts (death benefits) are usually tax-free under Section 10(10D) of the Income Tax Act, 1961. Maturity proceeds are also exempt, provided the premium does not exceed 10% of the sum assured for policies issued after 1 April 2012. Riders or bonuses may also enjoy tax exemption under certain conditions.

It is best to buy a Term Insurance plan early in life. Premiums are lower and you can get longer coverage. The ideal age is between 25 and 30 when you're likely to have dependents and liabilities. But it's never too late to buy Term Insurance, and people in their 50s can still benefit from the financial security it offers.

The only reason for you to buy a Term Insurance plan is to provide financial protection to the people who depend on your income. At the point of you getting your first job, think about whether anyone from your family (maybe parents, siblings, or spouse) relies on your income for their expenses. If yes, buy a Term Insurance plan immediately. If not, wait until you have financial dependents, to make this purchase.

Term Insurance plans are primarily designed to provide financial protection to your loved ones in case of your untimely death. They typically do not have any investment component, so they cannot be used for wealth creation.

• Age: Most insurance companies offer Term Insurance plans to people between the ages of 18 and 65.
• Income: You must have a steady income to pay your premiums.
• Medical history: You must disclose your medical history when you apply. People with certain medical conditions may have to pay higher premiums or may be denied coverage.
• Occupation: People with high-risk jobs may have to pay higher premiums or may be denied coverage.
• Smoking and alcohol consumption: People who smoke or drink alcohol may have to pay higher premiums or may be denied coverage.
• Nomination: You must name one or more beneficiaries to receive the death benefit in case of your demise.

Savings Plans help you save money regularly and grow your wealth over time. Here's how they generally work:

• Choose a plan: There are different types of Savings Plans, like fixed deposits, recurring deposits, Life Insurance saving plans, and mutual fund SIPs. Choose a plan that fits your financial goals, risk appetite, and investment horizon.
• Make regular contributions: Savings Plans require you to save regularly, either monthly, quarterly, or annually. This helps you develop a habit of saving and reach your goals faster.
• Your savings grow: Savings Plans invest your money in fixed interest-bearing instruments or market-linked securities, depending on the type of plan. This helps your money grow over time.
• Diversify your portfolio: You can invest in different types of saving plans to diversify your financial portfolio and reduce risk.
• Get your payout: At the end of the plan's term, you'll receive the accumulated amount, either as a lump sum or in instalments. Some plans also offer partial withdrawals or loans during the investment period.
• Save on taxes: Some Savings Plans offer tax benefits under Section 80C of the Income Tax Act, 1961. This can help you reduce your tax burden while building wealth.

• Age: Younger people typically have lower premiums than older people because they are less likely to get sick or injured.
• Gender: Women typically pay lower premiums than men because they have a longer life expectancy.
• Medical History: If you have any health problems, you will likely have to pay higher premiums.
• Lifestyle: Your lifestyle choices, such as smoking, drinking, and being overweight can increase your risk of health problems, which can also affect your premiums.
• Profession: Some professions are considered to be riskier than others, such as construction, mining, oil exploration, or firefighting. If you have a risky job, you will likely have to pay higher premiums.
• Policy type: The type of policy you choose can also affect your premium. For example, a Savings Plan with any additional riders will have higher premiums.
• Sum insured: The higher the sum insured, the higher your premium will be.

Step 1 - Gather the required documents: This includes the policy document, proof of identity, proof of age, proof of address, and bank account details (for electronic fund transfers). You may also need additional documents, depending on your specific retirement plan.

Step 2 - Contact us: You can reach us by phone, email, or through our website, or by visiting a branch office, and inform us if you want to file a claim.

Step 3 - Get the claim forms: We will provide you with the claim forms that you need to fill out. We can either send the physical form via post or you can download it from our website or collect it from a branch office.

Step 4 - Complete the claim forms: Be sure to fill out the forms accurately and completely. Include all of the required information, such as your policy number, personal details, and the type of payout you prefer (lump sum or annuity).

Step 5 - Submit the claim forms and documents: You can submit your claim forms and documents by post, email, through our website, or at a branch office.

Step 6 - Track your claim: Once you submit your claim, you can track its status through our website or by contacting our customer support. Be prepared to provide additional information or documents if requested.

Step 7 - Receive your benefits: Once your claim is approved, your payout will be processed according to your chosen option. This may involve transferring a lump sum amount to your bank account or setting up an annuity to provide you with regular income.

Step 8 - Monitor your payments. If you have chosen an annuity option, be sure to monitor your payments to make sure you are receiving them as agreed.

The earlier you start planning for retirement and investing in a Pension Plan, the more money you can save and grow, and the more financially secure you'll be.

• Identity proof: A PAN card, Aadhaar card, passport, or other document that proves your identity.
• Age proof: A birth certificate, passport, Aadhaar card, or other document that proves your age.
• Address proof: A utility bill, Aadhaar card, passport, or other document that proves your address.
• Income proof: Salary slips, income tax returns, bank statements, or other documents that show your income.
• Medical history: A disclosure of your medical history and, depending on the insurance company, a medical check-up.
• Photograph: A recent passport-size photograph.

To maximise ULIP returns, policyholders should choose a balanced portfolio of funds that includes both equity and debt funds. Additionally, regular monitoring of the portfolio and diversification can help maximise returns from ULIP Plans.